The pair bounced off a low of Y105.50 last night in the US and ended the session at Y106.33. It started today’s session with a slightly bid tone, driven mainly by Japanese names buying the pair and euro-yen, which went up to Y136.42 after opening at Y136.20 earlier. Dollar-yen followed suit and edged up to Y106.50 before the move ran aground. Comments from BOJ Governor Kuroda and finance minister Aso offered little fresh insights and dollar-yen and euro-yen gave back the initial gains as the domestic share markets turned lower into the morning close. Dollar-yen offers seen from above the morning high and extending through Y106.70 were sufficiently strong to push the pair back down through the initial Y106.23 low, with dollar-yen then trading a session low ofY106.13 while the cross traded down to Y135.81. Dollar-yen was last at Y106.26 with euro-yen at Y135.95. Dollar-yen is seen needing to work through rumored demand around Y106.10 before further declines. Stops are noted above Y106.70 and Y107.60 today, and on the downside below Y105.00.
